Analysts overestimated corporate earnings in 8 out of last 10 years: Ambit1 min read 25 Jun 2020, 11:39 AM IST
The overestimation was at its worst in FY16 and FY17, resulting in a negative divergence of 24% and 25%, respectively.
Two years, FY11 and FY19, also saw underestimation resulting in a positive divergence of 14% and 4%.
Analysts in the country overestimated corporate earnings in eight out of the last 10 financial years, Ambit Asset Management has said. In a media interaction on Wednesday, the company showcased research indicating that on average, analysts predicted optimistic earnings for each financial year two years ahead only to downgrade the estimates drastically when the concerned year dawned.
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